Whats going to feed the bull?Continuous slow economic growth combined with low rates

Discussion in 'Economics' started by S2007S, Oct 14, 2009.

  1. S2007S


    According to this fidelity "guru" slow economic growth and historical low interest rates are going to feed the multi year bull market.

    He goes on to say “Low growth means low interest rates, and actually that’s one of the best environments for stock-market investing,”

    Really, all the sudden low growth and low interest rates are a positive for the global economy. Damn this market is completely upside down. I think bernanke is going to keep rates down forever, as long as the bull is riding high why fu$k with the interest rates and the shut down of the almighty printing press, just keep the fu$king think pumping to keep everything propped up. Isn't that what a real economy is all about.

    Fidelity Guru: Multi-Year Bull Market Ahead

    Tuesday, October 13, 2009 2:36 PM

    By: Dan Weil Article Font Size

    A multi-year global stock market rally has begun, says Anthony Bolton, president of investments for money-management powerhouse Fidelity International.

    The rise will be led by emerging markets, he told Bloomberg. What’s going to feed the bull? Continuous, slow economic growth combined with low interest rates.

    “Low growth means low interest rates, and actually that’s one of the best environments for stock-market investing,” said Bolton, who oversees about $141 billion.

    U.S. and European central banks will continue their low interest rate policies for another year, he says.

    Emerging markets will perform best because their economic growth is stronger than in developed nations, Bolton maintains.

    “Anything that can show growth in this low-growth environment is going to be bid up by investors. It’s very pro the emerging-market world versus the developed world.”

    China represents one of Bolton’s favorite markets, because he thinks the government can engineer solid economic growth without triggering inflation.

    The IMF just boosted its estimates for Chinese economic growth to 8.5 percent for this year and 9 percent for 2010.

    Not everyone is so enthusiastic about emerging market stocks after the 60 percent gain of The MSCI Emerging Markets Index so far this year.

    "Vulnerability to global confidence crises will continue to define emerging markets as an asset class," World Bank managing director Ngozi Okonjo-Iweala told a recent conference.

    “Recovery is going to be weak, growth slow for the medium term."
  2. jnorty


    wait we had a 5 year bull mkt. were down for only 14 months and might i say in the that 14 months we had 4- 20% plus rallies. we have 10% chronic unemployment,a $12 trillion deficit,$1 trillion in bank loses,the s@p's already run a world record 64% even as earnings year over year tank and we're at the start of a multiyear bull mkt.and might i add they said 2008 was the worst recession since the 1930's. if ever a mkt needed to crash and humble the cocky masses its right now.
  3. add in inflation and we have a bigger bull. but it's got to go sometime or the other right? it can't keep going.

    in this climate
  4. One thing I would add to that is the 1 trillion in bank losses that we KNOW about. It's like the wizard of OZ.
  5. There is no growth. That's a cruel game of smoke, mirrors and money printing you are looking at.
  6. S2007S